Texas, May 8 /PRNewswire-FirstCall/ — Boo Koo Holdings,
Inc.(OTC:BOKO)(BULLETIN BOARD: BOKO) (Boo Koo), an energy drink
company, announced today financial results for the first quarter ended
March 31, 2008.
Net sales for the first quarter of
fiscal 2008 were $501,557 compared to $2.4 million for the first
quarter of fiscal 2007, a decrease of 78.8 percent. The Company
continues to be negatively impacted by the loss of key distributors.
Many of the lost distributors are independent Coca-Cola distributors
who have dropped Boo Koo over the last six months due to absorbing
additional Coca-Cola North America products.
margin for the first quarter of fiscal 2008 of 1.3%, as a percent of
gross sales, versus the fiscal 2007 first quarter gross margin of
41.4%, was lower due to a much higher percentage of sales at close out
prices in fiscal 2008, as well as the addition of Gazzu(TM), our
private label brand for Circle K which has a lower margin than our Boo
Koo energy drink.
Net loss for the three months
ended March 31, 2008 was $(2.5) million or $(0.07) per share, compared
to a net loss of $(1.2) million or $(0.06) per share for the three
months ended March 31, 2007. The increased net loss is primarily the
result of lower gross sales at lower margins, as well as higher
operating expenses due to increased legal and marketing costs.
the Company is in the process of finalizing its launch of its next
generation energy drink Boo Koo Burner(TM), which we expect to launch
in early June. Additionally, we are negotiating an agreement with
Circle K to add additional products to the Gazzu(TM) line. Gazzu(TM) is
now available in over 2,000 Circle K stores across the US as well as
expanding its product offerings under the brand name Gazzu(TM). Going
forward part of management’s restructuring plans is to focus on
developing and launching new products that improve the company’s
performance, as well as reducing costs in areas that are not
About Boo Koo
Koo develops, produces, markets and distributes alternative beverage
category energy drinks under the Boo Koo(R) and Gazzu(TM) brand names.
Boo Koo currently sells and distributes its products in parts of the
United States and Canada through its network of regional bottlers and
other direct store delivery distributors, including independent
Coca-Cola, Cadbury Schweppes and other wholesale distributors.
Gazzu(TM) is sold exclusively to Circle K. Boo Koo’s products are sold
primarily to mainstream convenience and grocery store chains, drug
stores, gas stations and other retail outlets.